For those who want to share investment information via email newsletters | The boundary of "Investment Advisory and Agency Business" you need to know to stay safe

Did you know that when you share investment information via an email newsletter, "financial industry regulations" actually come into play?
"It's fine if it's free," "It's okay because I'm not mentioning specific stocks"... Can you really say that for sure?

In this article, we will explain in what cases providing investment information via email newsletter falls under "Investment Advisory and Agency Business".
If you are thinking, "I want to start a paid newsletter" or "I want to monetize while sharing information," please take a look.

✅ What you will learn in this article

• Characteristics of newsletters that fall under Investment Advisory and Agency Business

• Ways to provide information that are exempt from regulations

• Points to note regarding advertising revenue and paid distribution

• Tips for operating a newsletter in compliance with financial regulations

■ What is the problem with providing investment information via email newsletter?

Sharing information about financial knowledge and market conditions is widely done in the form of email newsletters.
However, depending on the content and revenue structure, it may fall under "Investment Advisory and Agency Business" under the Financial Instruments and Exchange Act, and there is a risk that it will be illegal without registration.

For example, be careful in the following cases.

• You are charging a fee and presenting buy/sell decisions for specific stocks

• You are providing investment judgments based on the analysis of financial products

• Even if the distribution is free, you are earning advertising revenue (= there is substantial monetization)

■ Specific examples that fall under Investment Advisory and Agency Business

If you are sending, or intend to send, a newsletter with content that falls under the following, there is a high possibility that registration will be required in principle.

• Presentation of investment judgments based on price forecasts or valuation of financial products

• Providing investment advice via a monthly paid newsletter

• Clear recommendation actions targeting securities

• Cases where you are earning advertising revenue, etc., even if it is free for readers

In particular, monthly subscription-based paid distribution is a high-risk area that the Financial Services Agency clearly views as subject to regulation.

■ Examples that may not be subject to regulation

On the other hand, the following types of information provision are considered highly unlikely to fall under the category of investment advisory and agency business.

• General commentary on overall market trends or macroeconomics

• Knowledge sharing for investment beginners (e.g., what is diversified investment, etc.)

• Content that does not mention specific stocks and remains educational and neutral

• Cases that are completely free and do not generate advertising revenue

However, caution is required if the content is ambiguous, or if you are dealing with financial products other than securities for a fee.

■ Could advertising revenue also constitute 'investment advice'?

It is easy to think, 'It's fine because readers can read it for free and I'm just earning revenue from ads,' but this also requires caution.

If compensation is being received from advertisers, there is a risk that it could be deemed as 'encouraging readers to take specific actions' in return.

In such gray zones, consulting with an expert is effective because a judgment based on the actual circumstances is necessary.

■ Summary | Is distributing investment information one step away from being a 'financial business'?

When distributing investment-related information via a newsletter, the application of financial regulations changes significantly depending on whether it is 'monetized' and whether it 'provides specific investment advice'.

Before starting casually, it is important to determine whether your newsletter constitutes a **'business'**.